Asia report: Most markets higher ahead of Powell speech
Most markets in Asia finished in the green on Friday, even as political tensions escalated between Japan and South Korea, after the latter announced the cancellation of an intelligence-sharing deal between the nations.
AUD/USD
$0.6412
18:16 19/04/24
GBP/NZD
NZD2.1037
18:16 19/04/24
Hang Seng
16,224.14
10:21 19/04/24
Nikkei 225
37,068.35
09:44 19/04/24
USD/JPY
¥154.5955
18:16 19/04/24
In Japan, the Nikkei 225 was up 0.4% at 20,710.91, as the yen remained stable against the dollar, last trading at JPY 106.44.
Of the major components on the benchmark index, automation specialist Fanuc was up 0.44% and fashion firm Fast Retailing added 1.12%, while technology conglomerate SoftBank Group lost 0.15%.
Defence stocks were in the green, with Fujitsu rising 1.25%, Kawasaki Heavy Industries rising 0.69%, and Mitsubishi Electric 1.62% stronger.
The broader Topix index advanced 0.23% in Seoul, to close its trading day at 1,502.25.
On the mainland, the Shanghai Composite was 0.49% firmer at 2,897.43, and the smaller, technology-heavy Shenzhen Composite was 0.01% lower at 1,578.70.
South Korea’s Kospi was 0.14% weaker at 1,948.30, while the Hang Seng Index in Hong Kong was 0.5% higher at 26,179.33.
The blue-chip technology stocks were mixed in Seoul, with Samsung Electronics down 0.23%, while SK Hynix rose 0.81%.
Looking at defence plays in South Korea, Hanwha Aerospace was up 1.99%, Speco added 0.17% and Victek finished flat, having leapt early in the session.
The rise in defence stocks was mostly on the back of an announcement from Seoul overnight that South Korea was exiting its intelligence-sharing deal with Tokyo, as a trade dispute between the two countries continued.
Japan’s defence minister, Takeshi Iwaya, said that the decision from Seoul to end the deal, which was intended to share information on the threat from Pyongyang, showed that South Korean officials were not appreciative of the growing security threat posed by North Korea.
Eyes were also looking across the Pacific to Jackson Hole in Wyoming, where Federal Reserve chair Jerome Powell was due to give a speech later in the global day.
Market watchers and investors were hungry for clues as to the central bank’s next move, with markets already pricing in a rate cut in September, following its 25 basis point cut in July.
“The markets have been waiting patiently all week for Fed Chair Powell’s speech, which he will deliver today at Jackson Hole, the annual central bankers gathering in Wyoming,” said London Capital Group head of research Jasper Lawler.
“To say that the stakes are high for the meeting is an understatement.”
Lawler noted Powell was taking to the stage less than a month after the Fed’s first interest rate cut in a decade, and amid market expectations of another cut next month.
“His speech comes amid heavy interference from Trump.
“The President's ‘Powell bashing’ on Twitter is an almost daily occurrence now - he is looking for the Fed to drop interest rates by 1%.”
Oil prices were lower as the region entered the weekend, with Brent crude last down 0.69% at $59.51 per barrel, and West Texas Intermediate 0.67% weaker at $54.98.
In Australia, the S&P/ASX 200 managed gains of 0.33% to close its trading session at 6,523.10, while across the Tasman Sea, New Zealand’s S&P/NZX 50 was 1% lower at 10,622.35.
The down under dollars were a mixed affair, with the Aussie last 0.08% weaker against the greenback at AUD 1.4812, while the Kiwi strengthened 0.07% to NZD 1.5696.